Buying my fiancees house..

MrOletta

Hey folks!

So my fiancee and I had a quick question, and I was curious if anyone here could provide any insight. We're currently scheduled to be married 7 months and are living in a house that is under her name. Since the house was purchased last year, she received the $7500 credit (which is to be paid back over the course of ~10 years).

Since interest rates have gone down since she initially got it (over a point), I'm curious if I can purchase the house from her for what we owe to try to nab a lower interest rate along with the $8000 credit since I'd be a first time home buyer.

Any input/advice?

Nakatomi2010

You'd have to repay the $7500 immeadiately, more or less, since she hadn't lived in the house for three or five years, I forgot the requirement.

I don't recommend it due to the comlications involved.

MrOletta

I'm not seeing any timeline stipulations regarding having to live at the residence a certain period of time, just this quote:

If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

As far as qualifying for the 09 credit, I see this:

You do not qualify if you buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

EggyToast

Nak's point still holds; you'd have to pay back the 7500. Plus you'd have to go through closing costs. And you'd have to get the title transferred.

It's far easier to simply refinance and add your name to the title. Refinancing is essentially "using a new loan to pay off the old," or in really simple terms "selling the house to yourself."

Furthermore, it makes no sense to sell the house to you. If he sold it for less, you'd have to pay the difference during closing. More, you'd have a higher house payment. Same as the current principal is the same as a refinance, only more complicated.


In other words, you don't want to sell the house -- you want to drop the interest rate. That's what refinance is for. Talk to your mortgage company or a couple banks that you trust to see what their refi deals are.

PracticalProblemSolver

Why stop at just you? Get fifty of your most trustworthy friends together and pass the house along, you could pay the whole thing off that way.

LewieP's Mummy

whoops, wrong thread!

But, make sure your name is on the title deeds to the house, and that the mortgage is in both your names, that way you both own the house.

Figgy

There are costs associated with buying/selling a house that throw a fork in the spokes of your plan.

Land transfer tax and lawyer fees. These are not optional.

VisionOfClarity

Also if you buy it after you're married it's no good because both people must be first time home buyers to qualify.